Royalty Pharma PLC (NASDAQ:RPRX) Receives $48.67 Average PT from Analysts

Royalty Pharma PLC (NASDAQ:RPRX) has been assigned a consensus recommendation of “Buy” from the six research firms that are currently covering the firm, Marketbeat reports. Six research analysts have rated the stock with a buy recommendation. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $48.6667.

Several analysts have recently weighed in on the stock. Citigroup lifted their target price on shares of Royalty Pharma from $48.00 to $50.00 and gave the company a “buy” rating in a report on Tuesday, January 27th. UBS Group raised Royalty Pharma from a “neutral” rating to a “buy” rating and set a $49.00 price objective on the stock in a report on Friday, January 30th. Morgan Stanley reiterated an “overweight” rating and set a $61.00 target price on shares of Royalty Pharma in a research report on Thursday, February 12th. Wall Street Zen cut Royalty Pharma from a “strong-buy” rating to a “buy” rating in a report on Saturday, February 14th. Finally, Leerink Partners set a $45.00 price target on Royalty Pharma in a research note on Thursday, December 11th.

Insider Activity

In related news, EVP Marshall Urist sold 23,334 shares of the firm’s stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $39.15, for a total value of $913,526.10. Following the completion of the sale, the executive vice president owned 160,000 shares in the company, valued at $6,264,000. This trade represents a 12.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP George W. Lloyd sold 79,346 shares of the company’s stock in a transaction dated Wednesday, December 17th. The stock was sold at an average price of $38.57, for a total transaction of $3,060,375.22. Following the transaction, the executive vice president owned 30,654 shares in the company, valued at $1,182,324.78. The trade was a 72.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 778,654 shares of company stock worth $31,489,703 in the last 90 days. 18.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Royalty Pharma

Several hedge funds have recently bought and sold shares of the company. LM Advisors LLC acquired a new stake in Royalty Pharma in the fourth quarter valued at $26,000. Lloyd Advisory Services LLC. acquired a new stake in Royalty Pharma in the 4th quarter valued at about $30,000. Smartleaf Asset Management LLC grew its stake in Royalty Pharma by 868.1% in the 3rd quarter. Smartleaf Asset Management LLC now owns 881 shares of the biopharmaceutical company’s stock valued at $31,000 after acquiring an additional 790 shares during the last quarter. Private Trust Co. NA increased its holdings in Royalty Pharma by 52.9% during the 4th quarter. Private Trust Co. NA now owns 832 shares of the biopharmaceutical company’s stock valued at $32,000 after acquiring an additional 288 shares in the last quarter. Finally, Financial Consulate Inc. acquired a new position in Royalty Pharma during the third quarter worth about $35,000. 54.35% of the stock is owned by hedge funds and other institutional investors.

Royalty Pharma Price Performance

Shares of NASDAQ:RPRX opened at $47.43 on Monday. Royalty Pharma has a one year low of $29.66 and a one year high of $47.86. The stock has a market capitalization of $27.36 billion, a price-to-earnings ratio of 35.13 and a beta of 0.40. The company has a 50-day simple moving average of $42.28 and a 200-day simple moving average of $39.09. The company has a debt-to-equity ratio of 0.88, a quick ratio of 2.40 and a current ratio of 2.40.

Royalty Pharma (NASDAQ:RPRX) last issued its quarterly earnings results on Wednesday, February 11th. The biopharmaceutical company reported $1.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.33 by $0.13. The firm had revenue of $621.99 million for the quarter, compared to analysts’ expectations of $839.97 million. Royalty Pharma had a return on equity of 28.21% and a net margin of 32.38%. On average, analysts predict that Royalty Pharma will post 4.49 EPS for the current year.

Royalty Pharma Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Friday, February 20th will be given a dividend of $0.235 per share. This represents a $0.94 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Friday, February 20th. This is an increase from Royalty Pharma’s previous quarterly dividend of $0.22. Royalty Pharma’s payout ratio is presently 69.63%.

About Royalty Pharma

Royalty Pharma plc is a specialty finance company that acquires biopharmaceutical royalty interests and provides non-dilutive financing to drug developers and rights holders. The firm purchases future royalty streams, milestone-contingent payments and other revenue rights linked to approved and late-stage pharmaceutical and biotechnology products. By paying upfront consideration for these rights, Royalty Pharma seeks to generate long-term cash flows tied to the commercial performance of a diversified portfolio of medicines.

The company’s transaction structures include outright royalty purchases, structured financings and milestone arrangements tailored to the needs of innovator companies, academic institutions and investors.